Select Committee on European Union Minutes of Evidence


Memorandum by Marta Lorens, Lubelskie Regional Representation (Poland)

  Poland has become the biggest beneficiary of the cohesion policy in the EU financial perspective for 2007-13. The total amount for execution of structural operations is approximately €85.6 billion from which €67.3 is EU budget share. The expenditures within the cohesion policy will be co-ordinated with other expenditures, among others the Common Agricultural Policy. The total amount of financial means for 2007-13 for development activities will be above €107.9 billion from which €85.4 billion comes from EU funds.

  The Lublin region has become a significant beneficiary of allocation within structural funds, the Cohesion Fund and the European Agriculture Fund. At division of the EU funds the attention was paid to invest in the area of so-called "Eastern Poland" to the higher degree than previously. Within the territory of our voivodship, apart from the Regional Operational Programme we will also become a beneficiary of all national programmes prepared by the Polish government, ie Operational Programme—Development of Eastern Poland, Operational Programme—Innovative Economy, Operational Programme—Infrastructure and Environment and additionally of the programme financed from the European Agriculture Fund: the Rural Development Programme. The total amount of the funds available in our region for 2007-13 for development activities is approximately €5 billion of which over €4 billion comes from EU funds.

The basic index describing economic potential of the region is value of Gross Domestic Product (GDP) per capita. In 2004 the value of GDP per capita in Lubelskie voivodship was PLN 16 800 (€7568 using purchasing power parity), which was 69% of the average level for Poland and 33.8% of the European average. The voivodship's share of GDP is nearly 4.0% and has been successively decreasing.

  The basis of regional economic development is the value of fixed assets and capacity for their reconstruction and increase. The gross value of fixed assets in the economy of Lubelskie voivodship was estimated in 2004 at the level of PLN 82.4 billion, 4.5% of the national share (and the 8th largest in the country). The unfavourable phenomenon is a slow modernization and exchange pace of gross fixed assets in the region. The renewal index measured by the value of investment outlays in 2000-04 in relation to gross value of fixed assets in 2004 is 23.8% for Lubelskie voivodship compared with 34% averaged across Poland. The value of investment outlays in Lubelskie voivodship in 2005 was slightly above PLN 4.4 billion, representing 3.4% of the investments in the country (the 11th highest). However the voivodship is located in last position in the country when the level of investment outlays is measured per capita: it equates to PLN 1992 (€583)—the average value in Poland is PLN 3434 (€1005). Many factors influence the quality of the voivodship area and the degree of its relations and connections with remaining part of the country and Europe. The most important factors are those resulting out of environmental and cultural conditions, the colonization system including the network of mutual relations between cities and rural areas highly influencing the level of interregional differentiations. Another important factor determining the area quality and region attractiveness is the level of voivodship basic technical infrastructure connected mainly with communication and transport, environmental protection, production and energy distribution.

  Badly developed infrastructure impacts significantly upon the low investment levels and tourist attractiveness of the voivodship. Lubelskie voivodship has been assessed for few last years as the least attractive region in Poland in rankings of investment attractiveness (ie the 15th position in the country (data from 2006)). Insufficient regional communication capacity, the poor condition of technical infrastructure, no areas prepared and ready for investment and a badly developed services network lead to Lubelskie voivodship being classified within the lowest E1 class in the assessment of investment attractiveness.

  The aforementioned data prove that the amount of €4 billion from EU funds allocated for the period 2007-13 will be insufficient from the point of the region investment needs.

  The attempt to even the level of Lublin region development in relation to faster and better developed regions in Poland and simultaneously dynamic economic development in the European space will require additional funds, both national and European, calculated for longer period of time.

21 May 2008





 
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